Before researching which metric platforms may work for your company, it is critical to determine the exact types of information your organization needs to collect to improve processes. The following are some key performance metrics that every small business should be looking at:
- Sales. It is essential to track a few key performance indicators (KPI) for sales metrics, such as leads coming in, the ratio of turnover, and the sales funnel as a whole. Other metrics to consider can include return on sales or return on assets. It is important to correlate all sales data with advertising campaigns and changes in pricing.
- Finance. One of the most important financial metrics for a small business to track is the cost of customer acquisition. This includes everything it costs to acquire a new customer including all aspects of marketing and sales. As a company experiences growth and its brand image develops, this cost should go down.
- Operations. There are many ways in which a small business can follow the productivity of staff. For example, a sales productivity ratio can be calculated by actual revenue divided by the number of salespeople. You can check for continuous improvement by accumulating your own statistics, or you can compare your organizationвЂ™s productivity to industry norms.
- Digital footprint. It is critical for a business to also monitor its online processes. This can include metrics on web presence, click-throughs, content, marketing, social media, trending topics, etc. Having your thumb on a few digital metrics is the key to working smarter.
Once a small business has decided what information is actionable, it is time to select the best-fit tool for managing the data.